Teekay Corporation Ltd. · NYSE:TK
Teekay — Q1 2007 Earnings Presentation
17 slides from Teekay's earnings presentation, May 10, 2007
Slide 1: Teekay's First Quarter 2007 Earnings Presentation
TEEKAY SHIPPING CORPORATION Teekay’s First Quarter 2007 Earnings Presentation May 10, 2007 TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain future events and performance, including statements regarding: Teekay’s pla
Slide 3: First Quarter Highlights
First Quarter Highlights f 1q07 net income of $76.4m, or $1.02 per share (including specific items which decreased net income by $7.4m, or $0.10 per share) f Generated cash flow from vessel operations of $180.5m, of which $116.8m, or 65% from fixed-rate businesses f Announced planned acquisition of
Slide 4: Developments in Teekay's Offshore Segment
Developments in Teekay’s Offshore Segment f1q07 CFVO of $67.0 million, up from 4q06 due to consolidation of five 50% owned shuttle tankers fAt the end of 1q07, two tankers undergoing conversion to shuttle tankers and one FSO being upgraded f Delivery in 2nd quarter 2007 f To be offered to Teekay Off
Slide 5: Developments in Teekay's Liquefied Gas Segment
Developments in Teekay’s Liquefied Gas Segment f 1q07 CFVO of $25.8 million compared to $19.9 million in 4q06 due to delivery of the RasGas II vessels f Second and third RasGas II LNG carriers commenced 20-year fixed-rate time charter on January 2 and February 27, 2007, respectively f All RasGas II
Slide 6: Developments in Teekay's Conventional Tanker Segments
Developments in Teekay’s Conventional Tanker Segments fFixed-rate Tanker Segment: f 1q07 CFVO of $24.0 million compared to $25.1 million in 4q06 fSpot crude oil and clean product tanker segment: f 1q07 CFVO of $63.7 million compared to $54.2 million in 4q06 as a result of higher TCE rates for Suezma
Slide 7: OMI Acquisition
OMI Acquisition f On April 17, Teekay and TORM announced definitive agreement to acquire OMI for $29.25 per share - total cost of $2.2 billion f Tender offer launched on April 27; expected to close May 25 f Investment Highlights: f The addition of OMI’s 20* Suezmaxes, consolidates Teekay’s position
Slide 8: Strong Suezmax Tanker Fundamentals
Strong Suezmax Tanker Fundamentals North Sea Black Sea US West US Atlantic Coast Ceyhan Asia Trade route Cross- Cross- MEG – USWC M.E. Gulf US Gulf Med India New longer West haul trades Brazil Africa MEG – China 19 days WAF – China 30 days Existing fleet: 296 (Non d/hull: 61) 126 n/b on order Establ
Slide 9: Financial Discussion
Financial Discussion TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 10: Segment Operating Results
Segment Operating Results (in thousands of U.S. dollars) Three Months Ended March 31, 2007 (unaudited) Offshore Fixed-Rate Liquefied Gas Segment Tanker Segment Segment Spot Segment Total Net voyage revenues 220,149 44,029 37,472 157,806 459,456 Vessel operating expenses 62,714 11,690 6,458 16,579 97
Slide 11: Summary Income Statement
Summary Income Statement Three months ended Mar. 31, 2007 Dec 31, 2006 '000s of USD (except per share data) (unaudited) (unaudited) VOYAGE REVENUES 583,016 586,990 OPERATING EXPENSES General and administrative expenses (58,797) (56,377) Gain on sales of vessels - (4,754) Restructuring charge - (1,51
Slide 12: Summary Balance Sheet
Summary Balance Sheet As at Mar 31, As at Dec 31, In 000s of USD 2007 2006 (unaudited) (unaudited) ASSETS Cash and cash equivalents 370,714 343,914 Other current assets 329,131 318,229 Total restricted cash 766,196 679,992 Other assets 761,512 535,996 Vessels and equipment 5,306,578 4,925,409 Advanc
Slide 13: EPS Rule of Thumb
EPS Rule of Thumb $1.75 $1.50 Q2 2007: Spot Rate increase $1,000 TCE/day above EPS Increase $16,000 / day ~ $0.06 / qtr $1.25 Quarterly Earnings Per Share $1.00 $0.75 $0.50 $0.25 $- $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Aframax Rates ($ per day) 13 www.teekay.com
Slide 14: Tanker Market Perspectives – Expect the Unexpected
Tanker Market Perspectives – Expect the Unexpected Pre-2007 Concerns Actual/Likely Outcome Oil Demand f Moderating global economic growth f Higher China/India/Europe growth more than offsets weaker US growth f Weak oil demand growth due to high energy prices f Weakening US dollar offsets increase in
Slide 15: Appendix
Appendix TEEKAY – THE MARINE MIDSTREAM COMPANY® www.teekay.com
Slide 16: Newbuilding/Conversion Deliveries
Newbuilding/Conversion Deliveries 2Q07 3Q07 4Q07 2007 Offshore Segment 2 2 Fixed-Rate Tanker Segment Liquefied Gas Segment Spot Segment 1 1 Total 3 3 1Q08 2Q08 3Q08 4Q08 2008 Offshore Segment 1 1 Fixed-Rate Tanker Segment 1 1 2 Liquefied Gas Segment 1 4 2 7 Spot Segment 2 2 4 Total 3 5 2 4 14 1Q09 2
Slide 17: Capex
Capex Capex by Segment (in millions) 2007 2008 2009 2010 Total Offshore Segment $138 - $23 $184 $345 Fixed-Rate Tanker Segment 13 59 - - 72 Liquefied Gas Segment 228 191 54 - 473 Spot Segment 61 271 226 - 558 Total $440 $521 $303 $184 $1,448 17 www.teekay.com